Business & Finance
Business and Finance
Business and Finance
Mon, February 2, 2009
Sun, February 1, 2009
Fri, January 30, 2009 1st Pacific Bancorp: 1st Pacific Bancorp Reports 2008 Year End Results
SAN DIEGO, CA--(Marketwire - January 30, 2009) - 1st Pacific Bancorp (
1st Pacific Bank remains "well-capitalized" by regulatory standards, with a Total Risk-Based capital ratio of 10.36% and a Tier 1 Risk-Based capital ratio of 7.83%. To be considered "well-capitalized" a bank must have over 10% Total Risk-Based capital and 6% Tier 1 Risk-Based capital. The non-cash charge for goodwill impairment did not impact the calculation of regulatory capital because goodwill and other intangibles are excluded from regulatory capital.
Compared to December 31, 2007, loans as of December 31, 2008 increased from $349.8 million to $358.9 million, an increase of 2.6%, deposits declined from $345.4 million to $333.9 million, a decrease of 3.3% and total assets increased from $414.7 million to $427.9 million, an increase of 3.2%.
As of December 31, 2008, our loan loss reserve was $5.1 million, or 1.42% of total loans outstanding. The year-end provision for loan losses followed an extensive review of the entire loan portfolio. Nonperforming assets as of December 31, 2008 totaled $13.6 million. "The determination of the adequacy of the loan loss reserve took into consideration the reasonable potential for loans returning to a performing status and the adequacy of the collateral securing those loans," said President and Chairman of the Board Ron Carlson.
"The bank has a diversified deposit base provided by our eight branches and we maintain substantial additional liquidity sources through lines of credit established with the Federal Home Loan Bank and the Federal Reserve Bank," commented Jim Burgess, Chief Financial Officer. He further indicated that the bank is participating in the Federal Deposit Insurance Corporation program in which all non-interest bearing deposits are fully insured by the FDIC through December 31, 2009, regardless of amount. Recent increases in FDIC insurance for interest bearing deposits as well as the bank's ability to use the CDARS program provide our depositors the ability to obtain the maximum FDIC insurance for their accounts.
"The Board of Directors and management team are focused on improving asset quality, reducing the level of problem assets and returning to profitability. While this was a challenging year for the banking industry we are cautiously optimistic that we will make meaningful progress in these areas in the next few quarters," said Carlson.
About 1st Pacific Bancorp
1st Pacific Bancorp is the holding company for 1st Pacific Bank of California, San Diego's leading local business bank. The Bank offers a full complement of business products and services to meet the needs of professional firms, small to mid-sized businesses, their owners and employees. 1st Pacific Bank has offices in University Town Center, the Tri-Cities area of Oceanside, Mission Valley, Inland North County, El Cajon, La Jolla, Solana Beach and downtown San Diego. For additional information, visit the company's website at [ www.1stpacbank.com ].
Safe Harbor Statement. This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by 1st Pacific Bancorp with the Securities and Exchange Commission. 1st Pacific Bancorp undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
1st Pacific Bancorp Fourth Quarter 2008 Results (Unaudited) Dec 31, 2008 Sept 30, 2008 Dec 31, 2007 ------------- ------------- ------------- ASSETS Cash and due from banks $ 6,482,153 $ 9,705,635 $ 6,397,189 Federal funds sold 18,010,000 17,110,000 11,160,000 ------------- ------------- ------------- Total cash and cash equivalents 24,492,153 26,815,635 17,557,189 Investment securities available for sale 25,052,874 26,398,344 23,746,429 FRB, FHLB and other equity stock, at cost 4,611,400 4,942,850 3,184,200 Construction & Land 109,592,264 116,697,199 125,661,143 Residential & Comm'l RE 147,965,134 147,698,994 120,530,541 SBA 7a & 504 Loans 8,820,177 9,837,192 15,880,428 Commercial Loans 76,185,892 75,430,725 77,581,769 Other Consumer 16,296,228 16,030,939 10,164,841 ------------- ------------- ------------- Total loans and leases 358,859,695 365,695,049 349,818,722 Allowance for Loan Losses (5,085,915) (4,072,629) (4,516,625) ------------- ------------- ------------- Total loans and leases, net 353,773,780 361,622,420 345,302,097 Premises and Equipment, net 3,611,224 3,753,724 4,094,785 Other Real Estate Owned 1,390,000 0 0 Goodwill and Other Intangible Assets 1,312,544 11,761,501 11,906,536 Accrued Interest and Other Assets 13,614,311 10,261,628 8,856,089 ------------- ------------- ------------- Total Assets $ 427,858,286 $ 445,556,102 $ 414,647,325 ============= ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 62,534,489 $ 70,505,740 $ 73,366,761 Interest bearing checking 16,730,751 14,898,330 16,344,597 Savings and Money Market 77,037,436 88,076,365 98,639,209 Time Deposits 177,533,418 184,118,960 157,011,040 ------------- ------------- ------------- Total Deposits 333,836,094 357,599,395 345,361,607 Subordinated Debentures 10,155,000 10,155,000 10,155,000 Other borrowed money 50,000,000 30,000,000 10,000,000 Accrued interest and other liabilities 4,337,719 4,333,754 4,156,771 ------------- ------------- ------------- Total liabilities 398,328,813 402,088,149 369,673,378 Shareholders' Equity: Common stock and additional paid-in capital 37,787,745 37,687,862 37,378,697 Retained Earnings (7,262,675) 6,399,787 7,649,040 Accumulated other comprehensive income(loss) (995,597) (619,696) (53,790) ------------- ------------- ------------- Total shareholders' equity 29,529,473 43,467,953 44,973,947 ------------- ------------- ------------- Total liabilities and shareholders' equity $ 427,858,286 $ 445,556,102 $ 414,647,325 ============= ============= ============= 1st Pacific Bancorp Fourth Quarter 2008 Results (Unaudited) THREE MONTHS ENDED TWELVE MONTHS ENDED Dec 31, 2008 Dec 31, 2007 Dec 31, 2008 Dec 31, 2007 ------------- ------------ ------------- ------------ INTEREST INCOME Loans, including fees $ 5,733,790 $ 7,273,105 $ 25,103,569 $ 27,241,609 Investment securities 353,375 376,017 1,798,850 951,054 Federal funds sold 28,482 261,502 326,031 1,008,764 ------------- ------------ ------------- ------------ Total interest income 6,115,647 7,910,624 27,228,450 29,201,427 ------------- ------------ ------------- ------------ INTEREST EXPENSE Deposits 2,025,186 2,909,219 8,675,814 10,747,435 Subordinated debt and other borrowings 402,673 297,920 1,694,384 1,212,927 ------------- ------------ ------------- ------------ Total interest expense 2,427,859 3,207,139 10,370,198 11,960,362 ------------- ------------ ------------- ------------ Net Interest Income 3,687,788 4,703,485 16,858,252 17,241,065 Provision for Loan Losses 5,150,000 150,000 8,950,000 338,000 ------------- ------------ ------------- ------------ Net interest income after provision for loan losses (1,462,212) 4,553,485 7,908,252 16,903,065 NON INTEREST INCOME Service charges, fees and other income 231,486 185,624 1,123,859 581,255 Brokered loan fees and gains on loan sales 0 0 97,824 128,283 ------------- ------------ ------------- ------------ Total non interest income 231,486 185,624 1,221,683 709,538 NON INTEREST EXPENSE Salaries and benefits 2,145,286 2,063,900 9,052,949 7,459,716 Occupancy and equipment 779,733 747,683 3,055,285 2,337,517 Goodwill and OTTI charges 10,664,000 0 11,164,000 0 Other expense 1,113,421 1,158,180 3,921,920 3,604,388 ------------- ------------ ------------- ------------ Total non interest expense 14,702,440 3,969,763 27,194,154 13,401,621 ------------- ------------ ------------- ------------ Income (Loss) before income tax expense (15,933,166) 769,346 (18,064,219) 4,210,982 Income tax expense (benefit) (2,270,703) 326,269 (3,152,503) 1,745,801 ------------- ------------ ------------- ------------ Net Income (Loss) ($ 13,662,463) $ 443,077 ($ 14,911,716) $ 2,465,181 ============= ============ ============= ============ Basic earnings (loss) per share ($ 2.74) $ 0.09 ($ 3.01) $ 0.56 Diluted earnings (loss) per share ($ 2.74) $ 0.09 ($ 3.01) $ 0.52 Average shares outstanding 4,980,155 4,920,795 4,961,074 4,405,191 Average diluted shares outstanding 4,980,155 5,163,053 4,961,074 4,709,296 1st Pacific Bancorp Fourth Quarter 2008 Results (Unaudited) Quarterly (dollars in ------------------------------------------------------ thousands except 2008 2008 2008 2008 2007 per share data) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr ---------- --------- --------- --------- --------- EARNINGS Net interest income $ 3,688 4,279 4,470 4,422 4,703 Provision for loan losses $ 5,150 250 3,550 0 150 NonInterest income $ 231 432 327 232 186 NonInterest expense $ 4,038 3,966 4,140 3,886 3,970 Goodwill and OTTI charges $ 10,664 500 0 0 0 Net income (loss) as reported $ (13,662) 10 (1,706) 447 443 Basic earnings (loss) per share $ (2.74) 0.00 (0.34) 0.09 0.09 Diluted earnings (loss) per share $ (2.74) 0.00 (0.34) 0.09 0.09 Average shares outstanding 4,980,155 4,964,107 4,950,263 4,949,524 4,920,795 Average diluted shares outstanding 4,980,155 5,066,774 4,950,263 5,167,393 5,163,053 PERFORMANCE RATIOS Return on average assets -12.30% 0.01% -1.55% 0.44% 0.42% Return on average common equity -124.65% 0.09% -14.88% 3.94% 3.91% Net interest margin 3.54% 3.90% 4.32% 4.60% 4.71% Efficiency ratio 375.13% 94.80% 86.32% 83.50% 81.20% CAPITAL Tangible equity to assets 6.62% 7.31% 7.24% 8.18% 8.21% Tangible book value per share $ 5.67 6.38 6.44 6.78 6.69 ASSET QUALITY Net loan charge-offs (recoveries) $ 4,137 3,996 223 25 98 Allowance for loan losses $ 5,086 4,073 7,818 4,492 4,517 Allowance for losses to total loans 1.42% 1.11% 2.08% 1.31% 1.29% Nonperforming loans $ 12,264 13,816 11,640 4,255 5,554 Other real estate owned $ 1,390 0 0 0 0 Nonperforming assets to total assets 2.80% 3.10% 2.57% 1.01% 1.34% END OF PERIOD BALANCES Total Loans $ 358,860 365,695 376,518 342,239 349,819 Total assets $ 438,221 445,556 452,194 422,276 414,647 Deposits $ 333,836 357,599 344,352 322,677 345,362 Shareholders' equity $ 29,529 43,468 43,686 45,414 44,974 Full-time equivalent employees 105 107 106 109 107 AVERAGE BALANCES Total loans $ 365,669 376,541 364,791 341,070 345,918 Earning assets $ 412,934 435,327 415,197 385,470 396,221 Total assets $ 440,589 460,575 442,380 411,966 423,198 Deposits $ 347,955 351,748 334,770 338,375 352,717 Shareholders' equity $ 43,485 44,152 45,989 45,489 44,905 12 Months (dollars in Year-To-Date thousands except -------------------- per share data) 2008 2007 --------- --------- EARNINGS Net interest income 16,858 17,241 Provision for loan losses 8,950 338 NonInterest income 1,222 710 NonInterest expense 16,030 13,402 Goodwill and OTTI charges 11,164 0 Net income (loss) as reported (14,912) 2,465 Basic earnings (loss) per share (3.01) 0.56 Diluted earnings (loss) per share (3.01) 0.52 Average shares outstanding 4,961,074 4,405,191 Average diluted shares outstanding 4,961,074 4,709,296 PERFORMANCE RATIOS Return on average assets -3.40% 0.67% Return on average common equity -33.30% 6.96% Net interest margin 4.09% 4.87% Efficiency ratio 150.41% 74.66% CAPITAL Tangible equity to assets 6.62% 8.21% Tangible book value per share 5.67 6.69 ASSET QUALITY Net loan charge-offs (recoveries) 8,381 98 Allowance for loan losses 5,086 4,517 Allowance for losses to total loans 1.42% 1.29% Nonperforming loans 12,264 5,554 Other real estate owned 1,390 0 Nonperforming assets to total assets 2.80% 1.34% END OF PERIOD BALANCES Total Loans 358,860 349,819 Total assets 438,221 414,647 Deposits 333,836 345,362 Shareholders' equity 29,529 44,974 Full-time equivalent employees 105 107 AVERAGE BALANCES Total loans 362,068 315,410 Earning assets 412,297 354,009 Total assets 438,726 370,514 Deposits 343,248 310,654 Shareholders' equity 44,774 35,431
